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Revocation recommended by the supervisor

If the supervisor is of the opinion that the debtor no longer satisfies the requirements laid down in the Act on Debt Mitigation, the supervisor will send the Debtors' Ombudsman a recommendation that the debtor’s authorisation for debt mitigation be revoked. Such a recommendation may stem, for instance, from a change in the debtor’s circumstances or from new information that has come to light. This also applies if the supervisor is of the opinion that the debtor has not honoured their obligations, or if the applicant has not explained their financial position satisfactorily.

Assessment by the Debtors' Ombudsman

The Debtors' Ombudsman makes an independent assessment of the supervisor’s opinion that information indicating that the debtor no longer satisfies the statutory requirements has emerged. During the case handling, the debtor is sent a letter and granted a deadline for submittal of a protest, documentation, opposition information to the Debtors' Ombudsman. When the deadline has passed, the Office decides whether the debtor shall be authorised to continue seeking debt mitigation or whether such authorisation shall be revoked.

If the Office decides to revoke the authorisation for debt mitigation, this decision may be appealed to the Welfare Appeals Committee within two weeks from the date the decision is received.

The moratorium on payment ends two weeks after the delivery of the decision. If the debtor decides to appeal the Office’s decision and the appeal is received by the Welfare Appeals Committee within two weeks, the moratorium remains in effect until a ruling has been made.

The most common reasons for a supervisor’s recommendation that authorisation for debt mitigation be revoked:

  • the debtor has not set enough money aside during the moratorium period;
  • the debtor does not consent to the sale of real estate despite not having the debt service capacity required to pay the outstanding mortgages;
  • the debtor has neglected to consult with the supervisor as required; i.e., has not answered the supervisor’s queries or has not assisted in the preparation of a draft debt mitigation agreement.


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